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Customer satisfaction and service quality Md.Badruzzaman [email protected] 1 Md.Badruzzaman

Customer satisfaction and service quality

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Page 1: Customer satisfaction and service quality

Md.Badruzzaman 1

Customer satisfaction and service quality

[email protected]

Page 2: Customer satisfaction and service quality

Md.Badruzzaman 2

Definition of Customer Service

• You never want to hear this when you own a business:"Our customers are revolting! They are demanding more for less and

want world class products and services and they want it now. If we can't provide what they want, they will find some one who can. We must provide great customer service."

One of the best customer service definitions I have come across is:

excellent customer service (is) the ability of an organization to constantly and consistently exceed the customer's expectations

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Customer Customer

Customer is the most important person

He is not depend on us , rather we depend him

He is never an interruption to work rather he is the purposeIn serving him the company does no favor to him rather he obliges by providing an opportunity to serve him/her.He is not someone to argue bcz no one can win argument to him

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Customer satisfaction

Definition: what customer expects and how he perceives that service received lived up to those expectations.

Service satisfaction=(customer) expectation-perception (of customer)

Objective satisfaction is reduction of the discrepancy between the current situation and the desired situation

Depend more on customer & his style than technology or system

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◊ Overall post purchase evaluation lead to satisfaction/dissatisfaction

◊ A state of experience: intellectual & emotional patron-centered personal reaction/response depend on (1) perception (2) view point (3) experience (4) expertise

◊ Satisfying a person differs from satisfying a need : long term customer satisfaction is the aim.

Customer satisfaction cont....

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Customer satisfaction cont....

Customer’s exceptions tell what to sell and serve (user requirement)

Customers perceptions of service tell how to sell, serve and satisfy users behaviors, attitude, preference, e.t.c) as they vary over time and from person it has to be on continuous basis

Perception is a conscious thought process, it consist of sensory perception, association, evaluation & decision

Individual perception is all encompassing (hopes, fear, upper limits) and all powerful.

User perception goes deep and when it comes to perception feelings are facts

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Customer satisfaction cont....

f People like to hold on old ideas and beliefs as though they were valued personal possessions. It requires original thinking which hurts because of considerable effort, self-analysis and risk to adopt new idea.

f People who do not rethink their past have habitual behavior. The only people who can change their mind are those who use it

f Satisfaction has a linear relation to loyalty and repeat purchase.

f Measuring satisfaction is part of research method. Psychometric factors, practical considerations, choice of scales, administration of questionnaire, etc are used.

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Customer satisfaction in Orgz.

• 1. Expectationf Image of symphony helps to determine exceptionf Advertisement & casual conversations affect imagef Image is redefined based on immediate impact when service is

approachedf Previous experience has powerful influencef Regular customers have more realistic expectations

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2. Perception f Single incident can changes in other interactionsf To improve: involve customers genuinelyf Strives for a service wide image of consistency and efficiency

3. Demandf Satisfaction and demand are closely linkedf Good service generate greater use from limitless pool of latency demandf Satisfaction is adaptive: good service over stretched causes drop in satisfaction ;poor

service retain some customers who are persistent, rarely satisfied and having low expectations.

f The rating further go down as service improves because of attracting more customers, who are more critical, want even higher level of service, & more knowledgeable

Customer satisfaction in Orgz…

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Types of customers & reasons for dissatisfaction

Types of customers

-Happy-go-lucky-Know-it-all

-Proud and in a hurry-angry and anxious

-Nervous

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• What do complaining customers want???To be taken seriously and to be treated with respectImmediate action feeling or words from your heart Compensation apologyClear up the problemTo be listened to• Expectation of your customers (96%) are reasonable Listen to themYou will “Fight” for themYou will “Feel” for them• Customer serviceCustomer service-your best sale toolCustomers must be given the best possible serviceCustomer satisfaction requires a professional work cultureAdvertise makes promises, but only people can keep them.

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How to make Customer Happy??(How to sell, serve, & satisfy customers)

• SellingHave empathyCustomer is bossCustomer is profit not overheadGive importance to people (service employees & customers)Create customersCommunicate continuously

• ServingFocus onBe customer orientedDevelop customer oriented policiesGive best possible serviceCustomer wants answers & solutions to their problemsFight for your customer

• Satisfying ListenVisit customerCheck employee’s attitude towards customersSolve the problemsLearn from dissatisfied customers.

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What is Service Quality ?

Product-based:

User-based:

Manufacturing-based:

Transcendent:Quality = Excellence. Recognized only through experience

Quality is precise and measurable

Quality lies in the eyes of the beholder

Quality is in conformance to the firm’s developed specifications

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• COMPONENTS OF SERVICE QUALITY

ServiceQuality

ServiceQuality

ReliabilityReliability

AssuranceAssurance

EmpathyEmpathy

TangiblesTangibles

ResponsivenessResponsiveness

ServQual dimensions

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The 5 Dimensions DefinedAfter extensive research, Zeithaml, Parasuraman and Berry found five dimensions customers

use when evaluating service quality. They named their survey instrument SERVQUAL.

In other words, if providers get these dimensions right, customers will hand over the keys to their loyalty. Because they’ll have received service excellence. According to what’s important to them.

The five SERVQUAL dimensions are:

• TANGIBLES-Appearance of physical facilities, equipment, personnel, and communication materials

• RELIABILITY-Ability to perform the promised service dependably and accurately• RESPONSIVENESS-Willingness to help customers and provide prompt service• ASSURANCE-Knowledge and courtesy of employees and their ability to convey trust and

confidence• EMPATHY-Caring, individualized attention the firm provides its customers

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What’s this mean for service providers?• #1 Just Do ItRELIABILITY: Do what you say you’re going to do when you said you were

going to do it.Customers want to count on their providers. They value that reliability.

Don’t providers yearn to find out what customers value? This is it.It’s three times more important to be reliable than have shiny new equipment or flashy uniforms.

Doesn’t mean you can have ragged uniforms and only be reliable. Service providers have to do both. But providers first and best efforts are better spent making service reliable.

Whether it’s periodic on schedule, on-site response within Service Level Agreements (SLAs), or Work Orders completed on time.

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#2 Do It NowRESPONSIVENESS: Respond quickly, promptly, rapidly, immediately,

instantly.Waiting a day to return a call or email doesn’t make it. Even if customers

are chronically slow in getting back to providers, responsiveness is more than 1/5th of their service quality assessment.

Service providers benefit by establishing internal SLAs for things like returning phone calls, emails and responding on-site. Whether it’s 30 minutes, 4 hours, or 24 hours, it’s important customers feel providers are responsive to their requests. Not just emergencies, but everyday responses too.

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#3 Know What Your Doing

• ASSURANCE: Service providers are expected to be the experts of the service they’re delivering. It’s a given. SERVQUAL research showed it’s important to communicate that expertise to customers. If a service provider is highly skilled, but customers don’t see that, their confidence in that provider will be lower. And their assessment of that provider’s service quality will be lower.

• RAISE CUSTOMER AWARENESS OF YOUR COMPETENCIESService providers must communicate their expertise and competencies – before

they do the work. This can be done in many ways that are repeatedly seen by customers. By communicating competencies, providers can help manage customer expectations. And influence their service quality assessment in advance.

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#4 Care about Customers as much as the Service

• EMPATHY: Services can be performed completely to specifications. Yet customers may not feel provider employees care about them during delivery. And this hurts customers’ assessments of providers’ service quality.

• SERVICE DELIVERY MATTERSProviders’ service delivery can be as important as how it was done. Provider

employees should be trained how to interact with customers and their end-users. Even a brief session during initial orientation helps. Anything to help them understand their impact on customers’ assessment of service quality.

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#5 Look Sharp

TANGIBLES: Even though this is the least important dimension, appearance matters. Just not as much as the other dimensions.

Service providers will still want to make certain their employees appearance, uniforms, equipment, and work areas on-site (closets, service offices, etc.) look good. The danger is for providers to make everything look sharp, and then fall short on RELIABILITY or RESPONSIVENESS.

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• The 5 Service Dimensions Customers Care About

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The gaps model of service quality

ConsumerPast

experiencePast

experience

Expected serviceExpected service

Perceived servicePerceived service

Service delivery (including pre- and post-

contacts)

Service delivery (including pre- and post-

contacts)

External communications

to consumers

External communications

to consumers

Translations of perceptions into service

quality specifications

Translations of perceptions into service

quality specifications

Management perceptions of consumer expectations

Management perceptions of consumer expectations

GAP 5

GAP 3

GAP 2

GAP 1

GAP 4

Personal needsPersonal needsWord-of-mouth

communicationsWord-of-mouth

communications

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• Gap-1

Customer’s expectationsCustomer’s expectations

Company’s perceptions of customer expectations

Company’s perceptions of customer expectations

• Inadequate marketing research orientation

• Lack of upward communication

• Insufficient relationship focus

• Inadequate service recovery

Reasons for

providergap

I

Reasons for

providergap

I

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• Gap-2Translation of perceptions into service

quality specifications

Translation of perceptions into service quality specifications

Management perceptions of customer expectations

Management perceptions of customer expectations

• Poor service design

• Absence of customer-defined service standards

• Inappropriate physical evidence and servicescape

Reasons for

provider gap

2

Reasons for

provider gap

2

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Service deliveryService delivery

Customer-driven service designs and standards

Customer-driven service designs and standards

Reasons for

provider gap

3

Reasons for

provider gap

3

• Poor human resource policies

• Failure to match supply and demand

• Customer not fulfilling their roles

• Problems with service intermediaries

Gap-3

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• Gap-4External communications to consumersExternal communications to consumers

Service deliveryService delivery

• Lack of integration of marketing communications

• Inadequate management of customer expectations

• Overpromising

• Inadequate horizontal communications

Reasons for

provider gap 4

Reasons for

provider gap 4

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• Gap-5

• Not knowing what customers expect

• Not selecting the right service standards and designs

• Not delivering to service standards

• Not matching performance to promised

Customer expectations

Customer expectations

Customer perceptions Customer perceptions

Reasons for

Customer Gap 5

Reasons for

Customer Gap 5

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Closing the gaps

• Gap 1: Learn what customers expect• Gap 2: Establish the right service quality standards• Gap 3: Ensure that service performance meets standards• Gap 4: Ensure that delivery matches promises

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1. : Learn what customers expect• Understand customer expectations • Improve communication between frontline staff and management• Turn information and insights into action

2.Establish the right service quality standards• Set, communicate, and reinforce customer-oriented service standards for all work units• Measure performance and provide regular feedback• Reward managers and employees

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3.Ensure that service performance meets standards• Clarify employee roles• Train employees in priority setting and time management• Eliminate role conflict among employees• Develop good reward system

4.Ensure that service delivery matches promises• Seek input from operations personnel on what can be done

• ‘Reality’ advertising• real employees, real customers, real situations

• Seek input from employees on advertising

• Gain communications between sales, operations and customers

• Internal marketing programs

• Ensure consistent standards in multi-site operations

Can I take your

order?

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Thanks For Your Time